Funviralpark Brendan McDiarmid | Reuters
Equity futures were flat in overnight trading on Thursday.
Futures tracking the Dow Jones Industrial Average, S&P 500 and Nasdaq 100 futures all traded flat.
Last night’s move followed another down session in the market as December selling resumed and hopes for the Santa Claus rally faded. The Dow Jones Industrial Average fell 348.99 points, or 1.05%, but well below its low of 803 points. The S&P 500 and Nasdaq Composite fell 1.45% and 2.18% respectively.
Semiconductor stocks plunged on concerns about demand for Micron technology. Tesla also fell nearly 9% on concerns about falling demand. All major S&P 500 sectors also fell, leading to consumer discretionary declines.
The moves came as recession fears reignited, dashing some investors’ hopes of a year-end rally. Investors fear that excessive tightening by central banks around the world could push the economy into recession.
“From a broader market and economic perspective, nothing will change next year,” Dan Greenhouse, chief strategist at Solus Alternative Asset Management, said on CNBC’s “Closing Bell: Overtime” on Thursday. He said there were still questions about how far the Fed would raise rates.
With the end of 2022 just around the corner, stocks are poised to end a three-year rally and post their worst annual performance since 2008. %. The S&P and Nasdaq were down 6.3% and about 8.7% respectively.
Investors will be eagerly awaiting Friday’s economic data, including the November Personal Consumption Expenditure Report (the Federal Reserve’s favorite inflation gauge) and personal income. New home sales and his consumer sentiment index for December will also be released.
